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Despite Zee Entertainment Enterprises announcing a merger with Sony Pictures Networks India (SPNI), Invesco is insisting on holding an Extraordinary General Meeting (EGM), seeking the removal of Punit Goenka from Zee’s board.
For the past few weeks, Zee has been in a bitter conflict with Invesco and OFI Global China conflict, who on September 12, wrote a letter to the company seeking the removal of the three directors, as well as the appointment of six additional directors to the board. The letter prompted Zee Entertainment Enterprises’ merger with Sony Pictures Networks India (SPNI), to prevent the promoters from being pushed out of key positions of power within the company.
Corporate governance bodies, such as InGovern and IiAS, who had also raised concerns against the promoter family’s uncharacteristic command over Zee’s board and operations felt that the minority shareholders’ concerns were assuaged with this merger. However, Invesco believes that the September 22nd announcement of the merger bolsters their case for a much-needed change in the board.
“Your disclosure of 22 September 2021 is symptomatic of the erratic manner in which important and serious decisions have been handled at the company. Precisely to protect shareholder value and in the exercise of our statutory rights as an ordinary shareholder, we have called upon the company to hold an EGM, and it is your duty under company law to now do so” Invesco said in a September 23rd letter to the company.
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